DPL prices tender offer for $280 million 6½% senior notes due 2016

By Susanna Moon

Chicago, Sept. 22 – DPL Inc. said it priced the tender offer for up to $280 million principal amount of its $430 million outstanding 6½% senior notes due 2016.

Investors had tendered about $363.8 million of the notes as of 5 p.m. ET on Sept. 19, the early tender date.

The tender offer will end at 11:59 p.m. ET on Oct. 3, previously extended from 11:59 p.m. ET on Sept. 30. The tender offer began Sept. 3.

As of 5 p.m. ET on Sept. 16, investors had tendered $363,791,000 principal amount of the notes.

The total purchase price will be $1,092.56 for each $1,000 principal amount of notes, according to a company press release.

Pricing was set at 1 p.m. ET on Sept. 19 using the yield of the bid-side price of the 0.5% Treasury note due Aug. 31, 2016 plus 125 basis points.

The reference yield was 0.573%, and the tender offer yield was 1.823%.

The total payment includes an early tender premium of $50.00 per $1,000 of notes tendered by the early tender date.

Those who tender their notes after the early deadline will receive the total payment less the early premium.

As previously reported, the early tender date and pricing date were extended from Sept. 16.

DPL previously said it made the extensions because the Public Utilities Commission of Ohio (PUCO) set a meeting for 1:30 p.m. ET on Sept. 17 and that it could make findings and orders and consider other matters related to DPL’s subsidiary, Dayton Power and Light Co.

The matters include DP&L’s application to separate its generation assets by Jan. 1, 2017 and its application to sell its interest in its East Bend generating facility.

On Sept. 15, Moody’s Investors Service placed DP&L’s Baa1 senior secured long-term debt rating and DPL’s Ba2 senior unsecured long-term debt rating under review for possible downgrade, and DPL said it believes the extensions will give holders time to consider any findings and orders made at the PUCO meeting and the action of Moody’s Investors Service.

The tender offer is subject to a financing condition and a minimum tender condition.

Tendered notes may no longer be withdrawn, as of the early tender date.

BofA Merrill Lynch (888 292-0070 or 980 387-3907 collect) is the dealer manager. D.F. King & Co., Inc. (212 269-5550, 800 431-9643 or email dpl@dfking.com) is the information agent and tender agent.

DPL is a Dayton, Ohio-based energy company.

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